WinInfo Short Takes: Week of July 19, 2010

Apple Knew about iPhone 4 Antenna Problems a Year Ago, Went Ahead with Sales

According to a report in The Wall Street Journal, Apple knew a year ago that the iPhone 4 had a serious hardware flaw preventing its antenna from connecting to wireless networks, but the company went ahead with building and selling the devices to millions of consumers. The reason? Apple CEO Steve Jobs was apparently quite taken with the sleek design of the iPhone 4 and wasn't willing to compromise on that design by reworking it to get decent reception. This report also confirms my contention that Apple's secrecy-based culture prevents the company from properly testing products before unleashing them on consumers. "The electronics giant kept such a shroud of secrecy over the iPhone 4's development that the device didn't get the kind of real-world testing that would have exposed such problems in phones by other manufacturers, said people familiar with the matter," the report reads. Apple on Thursday shipped a minor software update for the iPhone that changes how the device displays its connectivity strength, but of course this update does nothing to address the iPhone 4's hardware defects. And today, Apple is holding a press conference to discuss what's going on with the iPhone 4. I can't wait to see what the company says. But you can expect Apple to never admit that it knew about this problem in advance and went ahead with it anyway. That would just be too honest.

Apple's iPhone "Fix": My Prediction

I fully expect that Apple has already developed a hardware workaround for the iPhone 4 reception problem and that its suppliers are racing to deliver new iPhone 4s to retailers with the fix applied. I also fully expect that Apple will not admit to this but will rather provide free bumper cases to existing iPhone 4 customers to quiet the critics, then silently replace any current iPhone 4s, in-store, when customers come in to complain or return the devices. In this way, all future iPhone 4s will work properly, and the company can avoid a recall. By the time you read this, of course, Apple may have already announced the fix, whatever it is. I'll have a write-up describing this event available as soon as it happens.

Getting Ahead in the Mobile Market 101: Pay Developers

To entice mobile developers to adopt its gestating Windows Phone platform ahead of the October launch and provide customers with at least some semblance of an apps store, Microsoft is taking a time-honored approach: It's paying them. According to various reports that Microsoft has studiously not denied, the software giant has reached out to mobile developers with its wallet open, offering up-front cash, revenue guarantees, and other financial incentives. (Some have suggested that next week's shipment of hundreds of prototype Windows Phone devices to developers is part of this scheme, but that's a bit unfair. It makes sense that top-tier developers would need actual hardware to test their apps and games before launch.) Honestly, there's nothing wrong with this, from what I can see, as Windows Phone is starting from zero in a market where Apple sells 225,000 iPhone apps and Google Android has 100,000 apps. It will be interesting to see how many Windows Phone apps are available at launch, of course, but I'll also be curious about the quality of those apps.

Wanted in Redmond: iPad Users

In what can only be described as a typically humorous and misguided Microsoftian move, Microsoft this week began polling Facebook users, looking for users of the Apple iPad. The goal? To study them and get feedback on why they use an iPad, what they like about the iPad, and how they're so rich that they can afford such a frivolous and pointless device. (Actually, that last bit wasn't in the study description; I was reading between the lines.) The study is two hours long and will take place over the next few days on Microsoft's Redmond campus—you know, exactly the kind of place you'd expect to see iPad users. Participants will be given a "Microsoft gratuity item." (And I'm crossing my fingers that it's that 2002-era HP Tablet PC that looks exactly like an iPad.) Here's what I expect Microsoft to discover: iPad users are clueless about the value of money, unconcerned about compatibility, and unclear what this "Microsoft" company does exactly. More than half of them will come into the study carrying some form of chai in a cup (hot or cold) and a third of them reads the "news" only from a single Mac-oriented blog. They are, in other words, Microsoft worst freaking nightmare. Have fun, everyone.

Russian Spy Was a Microsoft Employee

Sometimes the news is so fun it hurts. This is one of those times. One of the 12 Russian spies from the recently exposed spy ring was—get this—a Microsoft employee who worked at the software giant's Redmond campus. One can only hope that he got the source code for Microsoft Bob and silently delivered it back to whatever passes for the Kremlin these days, triggering a decades-long process in which the Russians will try to interact with a cartoon dog every time they want to launch a missile. Weirder things have happened.

You might have seen some reports this week that Office 2010 sales are disappointing. And sure enough, the reliable retail watchers at NPD—Microsoft trusts them, so you should too—noted that retail sales of Office 2010 have been "a bit disappointing" so far. But what does that mean, exactly? According to NPD, Office 2010 unit sales and revenues are down from Office 2007’s initial two weeks of sales but are slightly ahead of sales trends of Office 2007 so far this year. In other words, given the shift in the market for office productivity software over the past few years—with free options now available online and Microsoft forced to offer more compelling free and low-cost options (like the well-selling Key Cards)—Office sales are, in fact, pretty much where they should be. "Selling such a heavily used product into a base that has already been upgrading at a very high rate is an enormous challenge," NPD notes. Interestingly, NPD downplays the challenge from Google Docs and other lame web-based alternatives. "These products have little awareness among the mainstream consumer who is the retail boxed version’s primary customer," the NPD note reads. Instead, a saturated market is to blame. Office 2010's only real competition, as it turns out, is previous versions of Office.

Windows 2000, Windows XP with SP2 Bite the Dust

Both Win2K and XP with SP2 hit their End Of Life (EOL) milestones this week, meaning that the oldest supported version of Windows on the PC desktop is now XP SP3. So if you're still running XP SP2 for some reason, you need to upgrade it to continue to get security updates. And if you're still running Win2K—I mean, seriously. It's 10 years later, for crying out loud. Baywatch was still on TV when that OS was new!

Microsoft Cofounder Joins the Philanthropy Bandwagon

Microsoft cofounder Bill Gates might someday be more famous for his philanthropic efforts than for jumpstarting the PC industry, and he's made interesting progress in recent years getting some of his billionaire buddies to join him. Last month, Gates and BFF Warren Buffett launched a campaign to try to convince billionaires to pledge half of their fortunes to charity, a move that wouldn't affect their financial futures in the slightest but would have enormous and positive ramifications around the world. Well, they've got another member: The other Microsoft cofounder, Paul Allen, this week announced that he would commit the majority of his fortune to philanthropy after his death. And since that fortune is worth an estimated $14 billion today, that's big news. "I want to announce that my philanthropic efforts will continue after my lifetime," the world's 37th richest man said this week. "I've planned for many years now that the majority of my estate will be left to philanthropy to continue the work of the foundation and fund non-profit scientific research." Kudos to Mr. Allen for doing the right thing.

Google Rakes in the Cash, Disappoints Wall Street

Google continues to make money at an alarming rate, but the company's continued reliance on a single product—display ads—apparently has Wall Street spooked. The online giant posted a profit of $1.84 billion on revenues of $6.82 billion for the quarter ending June 30, but the profit figure wasn't as high as analyst expectations, and investors are starting to wonder why nothing else the company does is successful. Google continues to derive over 90 percent of its revenues from online ads, while most of its other businesses would be called charities at other companies. Of course, I think I know what Google's phase 2 looks like: more ads. The company is expanding into mobile ads and even TV and radio ads, too. So it's not as if Google does only one thing well. Relax, guys.

This Week, on the Windows Weekly Podcast

Leo and I recorded a new episode of the Windows Weekly podcast this week, on the usual day and time. It should be available by the weekend on iTunes and the Zune Marketplace, in both audio and video formats.

Apple is not my company, but I admire what they achieve in terms of technology and design. I am head of design and product innovation for a medium-sized international company and have a good idea of what's involved in producing the products that they do. Just watch yesterday's press conference video, or any design documentary featuring Jonny Ive, to give you an idea.

"Selling such a heavily used product into a base that has already been upgrading at a very high rate is an enormous challenge,"

Apparently not for Apple. They seem to be able to sell iphones to existing users at an ever increasing rate, as you never fail to point out when you mention iphone sales.

Its great when you make excuses for lagging Office sales. My guess is the moment ipad or iphone sales show any signs of sagging, you will be all over it.

etting Ahead in the Mobile Market 101: Pay Developers

"Honestly, there's nothing wrong with this, from what I can see, as Windows Phone is starting from zero "

If Apple had to pay developers to write software for the iphone, ipad, or even OS X, you would be all over them claiming its a sure sign that nobody is interested in the platform.

Wanted in Redmond: iPad Users

"Here's what I expect Microsoft to discover: iPad users are clueless about the value of money, unconcerned about compatibility, and unclear what this "Microsoft" company does exactly."

Make all the jokes you want, but you still fail to get why the ipad has been so successful. At least Microsoft if trying to learn to make a better product. Here's a hint. They don't care about a product that meets a checklist for specs. They don't care if it can do x,y & z, when a, b & c are all that matters. They want something that just works and is easy to use.

I'm far from missing the point. We have an iPad. It's gorgeous! Does some things very well. Others, not so much. It does not fill any corporate need for my group of clients well enough to warrant wide-scale deployment. They may be very well designed from a consumer point of view, but they're lacking badly for the corporate world. At least, in my corporate world they are.

Slide out keyboards are dirt traps and very annoying if a certain key stops functioning for whatever reason. If a key stops functioning how are you going to get around it - copy and paste the malfunctioning character(s)?

Slide out keyboards are not a great design solution.

In the business world, I have heard numerous Blackberry users complain about 'crunchy' keys.

"And whom will they turn to when a, b, or c breaks? Aside from Apple "hey, if we delete the forum posts, the problem doesn't exist!" support, you are on your own."

Once again you are missing the point.

Those like Paul, who look down on the ipad as a toy, or flawed because it does not do something miss the reason why it is popular. At least Microsoft has recognized there is a vibrant market for this type of devices. Not everyone needs a supercomputer that can do everything imaginable. There is a large group of customers (both consumer and corporate) who want something that does most of what they want, because those functions are very well designed.

@Klimecki - Sorry, I don't use a Blackberry - I use an Evo. Its a much better device than my old Pre or my even older iPhone. It runs great and does what I need it to do.

Like I have said several times, your childish rants and simple minded brand loyalty are a bit over the top. You may want to grow up and act like an adult soon. Eventually you will learn that we don't live in a one size fits all world.

"Several manufacturers have sold in excess of 100 million smart phones,most with physical keyboards, proving that not everyone needs a touchscreen."

There, do you get it now? Show me where "O" said that "everyone" needs a slide-out? What was said was that "O" prefers a physical keyboard. Your foolish banter is not witty in the least. Could it be time for you to grow up, maybe?

google has become worse than spam. They actually hijacked the internet and turned it into a giant billboard of spam ads. actually google is spam 2.0. spam on your videos, spam on your sites, spam on your email, spam on your calendar, spam on your web searches. spam spam spam.

you used to be able to avoid the ads with a simple add blocker. now google embeds it into every singe thing it can.

The spam machine has no sigs of slowing down. Maybe what we need is browser makers to start shipping browsers with built it adblock plus and block all google adwords and spam links. Only then will we get back the internet google hijacked.

"In what can only be described as a typically humorous and misguided Microsoftian move, Microsoft this week began polling Facebook users, looking for users of the Apple iPad."

Or to paraphrase:

"In what can only be described as a typically desperate and clueless Microsoftian move, The beleaguered and failing-in-every-market-it-enters-except-those-in-which-it-has-a-monopoly, software giant began trying to bribe Facebook using Apple iPad owners.

If there's proof of Microsoft's lack of direction and self confidence, surely this is it?

Well, I have to disagree with your outlook on the iPad. I see tons of potential for this tablet. Not this generation of it, yet, but there's potential there for sure.

As usual, I think it's over-priced, but that's my opinion. Perhaps in the business world, this would save in paper costs at the very least. I imagine people giving speeches being able to use this, politicians in session referring to briefing notes, legislative docs, bills etc on this.

Police could use it in their cars to get accurate photos and driver license info, rap sheets, vehicle descriptions.

Doctors for tracking prescriptions, GPs for patient files from room to room...

There are lots of possibilities here. However, the management side of this is sadly lacking, to say the least. If Apple can shore this up, I'm extremely excited about this!

Frivolous? Maybe in it's current form, but the potential is through the roof.

"I'm far from missing the point. We have an iPad. It's gorgeous! Does some things very well. Others, not so much. It does not fill any corporate need for my group of clients well enough to warrant wide-scale deployment. They may be very well designed from a consumer point of view, but they're lacking badly for the corporate world. At least, in my corporate world they are."

So, there you have it. Steve Jobs, in his usual arrogant fashion, gives buyers a sw update AND a free case....but wait, only till Sept. 30? What is key with that date? That is about how long it will take to have a batch of re-engineered phones out to the public. And, like his fans...he refuses to admit the design flaw here. Oh well. It is something. Lets see if his arrogance can patch the company's reputation that was damaged over the last few weeks.

Hey klimecki? I *get* it. I'm an IT guy. I'm always on the lookout for tech that will help me (and my clients) do their jobs more efficiently. As I told you, the iPad is not ready for Enterprise use IMHO.

@Oscar, I know, but they're not as elegant as the iPad is. My GP uses one and a Cisco wireless solution. I talked him into letting me see how it works. Pretty slick. I just think the gains you could see in the iPad would be even better. For example, no stylus.

Really? Just because you don't see the need doesn't mean the rest of the world doesn't. Stop thinking about your needs for once and admit, "gee, maybe some people could use other features it doesn't have." It doesn't take a whole lot of imagination to realize one size doesn't fit all. Given how they like to "Think Different" that company sure knows how to make tens of millions of people exactly the same.

Vista was a disaster for Microsoft. Microsoft are still having to allow users of both Vista and Win 7 to downgrade to XP and support it for years to come. It's going to be a millstone round the beleaguered software giants neck for years.

The Toyota and Apple comparison is simply wrong. The public cared about the Toyota debacle because people died.
The public largely don't care about the iPhone Antenna issue because to them it really isn't a problem. No-one died because their phone appeared to drop a few bars.

What they really need to do, along with the iPhone with slide-out keyboard, is produce a ruggedized iPad. There are tons of situations where I would think they would be beneficial, but they need to survive repeated drops and moisture, etc.

There is a reason those UPS delivery-signature pads / barcode readers are built like tanks... Either that Apple could license iOS to a company like Symbol/Motorola for creating suitable industrial products (that way it doesn't cut into their consumer-product base).

As it stands now, there is no way the iPad can be legally used in health care because it won't meet OSHA standards (unless it is the personal property of the docs, in which case it wouldn't be allowed on a med-center network, and thus be isolated from anything meaningful anyway).

The rugged tablets currently in those environments can be literally "hosed down" and sterilized if they come into contact with, err, things they shouldn't.

Really, what annoys me is that Apple comes up with some great ideas... But they are rarely business capable. Use in the "corporate world" is purely an unintended side-effect. They aren't doing what's needed to really break into the market. And frankly, I don't think they care. They've *always* been a consumer brand. It's like MS Office -- it gets used at home, but it has vastly more horsepower than 99% of home users need (seriously, Open Office would be more than adequate for darn near every home user). Likewise Apple products do see business use, but it's mostly spill-over like the MS office situation.

Good article. I, too, think it will make inroads. I would be curious as to how the financial app is being delivered to the iPad in their case. Also, our own Security team cleared the iPad as well (not the iPhone yet, strangely enough) but my area, which has to manage these devices, has not and we won't until Apple comes up with a better config tool than the iPhone Config Utility and/or the iTunes store.

It should be noted that they're experimenting with 15 of them which is not a large amount whatsoever, but a decent pilot for sure.

"Odd then, isn't it, that Apple are voted number 1 for customer satisfaction year after year?"

Congratulations to them. Maybe it's just me, but the last thing I want to do on a nice Friday is be on the phone with a polite, helpful award-winning person because my iPhone 4 has a yellow screen, can't keep calls connected, or died after updating the software so my signal bars look bigger.

@fanboys, those verticals you mention already are using tablets, particularly health care. Check out Motion Computing's and Fujitsu's offerings to see that the tablet market is alive and well in certain verticals. What the iPad broke in to was the consumer market. Time still remains before the book is written on that, though.

"Congratulations to them. Maybe it's just me, but the last thing I want to do on a nice Friday is be on the phone with a polite, helpful award-winning person because my iPhone 4 has a yellow screen, can't keep calls connected, or died after updating the software so my signal bars look bigger."

Give me a break. Given that 66% of all the smartphones in the world have a slide-out or hardware keyboard, I'm thinking they're fine and your anecdotal evidence is meaningless. Why do I say this? I'm willing to bet thousands of hardware engineers know a lot better than a random anonymous guy online.

I don't give a hoot if they're a "beautiful design" or not. They're functional and work exceptionally well. Why would I buy something pretty and meaningless? Sure, I could buy a Lotus, but if I need a good car to take the wife and kids to the grocery that's a pretty stupid purchase, don't you think?

If your finger tips are significant in size, and you don't like taking up 1/3rd or even half the screen with an on screen keyboard, then guess what... You need a slide-out.

I've tried several touch-only devices and they were useless -- I had to resort to carrying a stylus if I wanted to be certain of hitting my target. My mobile keyboard speed is quite high, not the 120wpm I get on a desktop keyboard, but fast enough I can do significant memos without grammatical or spelling errors .

Seriously, Apple introduces a slide-out, they sell 20 million of them, and everyone is happy. When was choice *ever* bad??? I don't need *any* company arbitrarily reducing my choices.

Another thing that's going to be really entertaining is seeing how Windows Phone 7 Phones (awful name - but whatever) get around the fact that ALL Smartphones drop signal bars, due to attenuation, when you hold them. As Jobs said, this is not just Apple's problem, it is one for the entire industry. The critics are not going to let Microsoft get away with it, especially as WP7 phones won't be able to do things like copy & paste, multitasking, etc.

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